DENVER--(BUSINESS WIRE)--Dec. 9, 2013--
QEP Resources Inc. (NYSE:QEP, “QEP” or the “Company”), today announced
that its wholly owned subsidiary, QEP Energy Company, has entered into a
definitive agreement to acquire oil and gas properties in the Permian
Basin for an aggregate purchase price of approximately $950 million (the
“Acquisition”). The properties, which are located in the Midland
sub-basin, primarily in Martin and Andrews counties in west Texas, will
diversify the Company’s exploration and production footprint, and
advance QEP’s objective to create long-term shareholder value through
the continued emphasis on high-margin crude oil and natural gas liquids
production. The Company’s Board of Directors was unanimous in its
approval of the Acquisition.

Acquisition Highlights:

Current net production of approximately 6,700 barrels of oil
equivalent per day (Boepd), of which approximately 68% is crude oil

Net proved reserves based on internal estimates of approximately 47
million barrels of oil equivalent (MMBoe)

“This Acquisition is part of our continuing strategy to become more
focused on crude oil and natural gas liquids,” said Chuck Stanley,
Chairman, President and CEO of QEP. “Our New Ventures team has been
actively focused on expanding our footprint in the world-class crude oil
provinces of North America, first in the Williston Basin and now in the
Permian Basin. We have evaluated numerous potential opportunities in the
Permian, but until now, none have met our acquisition criteria. This
Acquisition allows us to leverage our competitive strength of drilling
horizontal development wells in multi-pay, stacked reservoirs, and
provides a ten-year inventory of crude oil drilling locations.”

The Company plans to fund the Acquisition with proceeds from its
revolving credit facility and cash on hand, and expects to close the
transaction on or before January 31, 2014. In addition, QEP expects to
sell various non-core E&P assets located in the Midcontinent during the
first half of 2014, allowing the Company to maintain a strong balance
sheet and to have adequate liquidity. Pro forma for these transactions,
the Company expects to focus its capital spending in its two premier oil
assets: the Williston and the Permian basins, and its two liquids-rich
gas assets: the Pinedale Anticline and the Lower Mesaverde play in the
Uinta Basin.

“Along with the planned separation of QEP Field Services Company, the
Acquisition and the anticipated asset sales will continue the Company’s
transformation into a liquids-focused, pure-play E&P company with assets
located in premier basins across North America,” concluded Stanley.

QEP will host a conference call to discuss the Acquisition on December
9, 2013 at 8:30 a.m. EST (6:30 a.m. MST). Slides to accompany the
conference call have been posted on the QEP website at www.qepres.com.
The conference call can be heard live through a link on the QEP website
or by dialing (877) 407-8293 domestically or (201) 689-8349
internationally. Attendees should log in to the webcast or dial in
approximately 15 minutes prior to the call's start time. A replay of the
conference call will be available on the website and a telephone audio
replay will be available from December 9, 2013 to January 9, 2014 by
calling (877) 660-6853 domestically or (201) 612-7415 internationally
and then entering conference ID # 13573385.

About QEP Resources

QEP Resources, Inc. (NYSE:QEP) is a leading independent natural gas and
crude oil exploration and production company focused in two major
regions: the Northern Region (primarily the Rockies and the Williston
Basin) and the Southern Region (primarily Oklahoma, the Texas Panhandle,
and Louisiana) of the United States. QEP Resources also gathers,
compresses, treats, processes and stores natural gas. QEP Resources is
the majority owner of QEP Midstream Partners, LP (NYSE:QEPM) and owns
100% of the partnership’s general partner. For more information, visit
QEP Resources' website at: www.qepres.com.

Cautionary Statements

Forward-Looking Statements. This release includes forward-looking
statements within the meaning ofSection 27(a) of the Securities
Act of 1933, as amended, and Section 21(e) of the Securities Exchange
Act of 1934, as amended. Forward-looking statements can be identified by
words such as "anticipates," "believes," "forecasts," "plans,"
"estimates," "expects," "should," "will" or other similar expressions.
Such statements are based on management's current expectations,
estimates and projections, which are subject to a wide range of
uncertainties and business risks. These forward-looking statements
include statements regarding the anticipated closing date of the
Acquisition, the planned separation of our midstream businesses,
estimated proved and probable reserves to be acquired, estimated
ultimate recoveries of wells to be acquired, estimated percentages of
crude oil from such formations, forecasted prices of natural gas and
crude oil, the sale of non-core E&P assets, estimated locations,
estimated recoverable resource, funding for the Acquisition, operational
flexibility and improved capital and operating efficiencies following
the Acquisition, expected impact on production, and forecasted Adjusted
EBITDA. Actual results may differ materially from those included in the
forward-looking statements due to a number of factors including, without
limitation, prices for natural gas, oil and NGLs; availability of
capital; disruptions of QEP's ongoing business, distraction of
management and employees, increased expenses and adversely affected
results of operations from organizational modifications due to the
Acquisition; the inability of the parties to satisfy the conditions to
the consummation of the Acquisition; the impact of capital market and
business conditions on anticipated sales of various non-core assets and
on the nature and timing of a separation of our midstream businesses;
the impact on QEP of such separation, including the time and resources
devoted to its execution and the consequences of separation of the
midstream assets from QEP; the assumption of unidentified or
unforeseeable liabilities from the Acquisition; drilling and production
costs; availability of drilling services and equipment; regulatory and
other approvals; recoveries of gas in place; actual drilling results;
lease expirations; general economic conditions, including the
performance of financial markets and interest rates, global geopolitical
and macroeconomic factors; weather conditions and factors identified in
the Risk Factors section of the Company's Annual Report on Form 10-K for
the year ended December 31, 2012. QEP undertakes no obligation to
publicly correct or update the forward-looking statements in this
release, in other documents, or on the website to reflect future events
or circumstances.

Estimated Net Recoverable Resources. “Estimated net recoverable
resources” refers to the Company’s internal estimates of hydrocarbon
quantities that may be potentially discovered through exploratory
drilling or recovered with additional drilling or recovery techniques,
and are not proved reserves within the meaning of SEC rules. Actual
quantities that may be ultimately recovered from the Company’s interests
may differ substantially. Factors affecting ultimate recovery include
the scope of the Company’s ongoing drilling program, which will be
directly affected by the availability of capital; oil, gas and NGL
prices; drilling and production costs; availability of drilling services
and equipment; drilling results; lease expirations; transportation
constraints; regulatory approvals and other factors; and actual drilling
results, including geological and mechanical factors affecting recovery
rates.

Non-GAAP Financial Measures. QEP refers to Adjusted EBITDA, a
non-GAAP measure that management believes is a good tool to assess QEP's
operating results. Management generally defines Adjusted EBITDA as net
income before each of the following: separation costs, discontinued
operations, loss on early debt extinguishment, unrealized gains and
losses on basis-only swaps, gains and losses on asset sales, interest
and other income, interest expense, depreciation, depletion and
amortization, abandonments and impairments, exploration expense and
income taxes. Due to the forward-looking nature of this non-GAAP
financial measure for future periods, information to reconcile it to
forecasted net income, the most directly comparable GAAP financial
measure, is not available at this time, as management is unable to
project special items, mark-to-market adjustments and certain other
factors for future periods.